For those children who are currently covered by a child only health plan, they will remain covered as long as premium payments are made on a timely basis. The carriers will not rescind coverage. For those children who will need coverage as of 9-23-10, Legislation has recently been passed in California that would block California insurers from denying coverage to children with preexisting conditions, but would let them charge significantly higher premiums to those who don’t sign up during open enrollment periods each year and impose surcharges on those who try to abuse the system by dropping coverage when children are healthy.This legislation would limit how much children with preexisting conditions would have to pay if they signed up during open enrollment. Carriers that refuse to participate would face penalties.

This bill, AB 2244, is pending signature by Gov. Schwarzenegger. He is expected to sign the bill.